Ray McCann and Cathya Djanogly review recent case law which suggests that HMRC have been applying the penalty legislation too rigidly
Consider the following situation. ‘Alice’ (not her real name) was born in 1919 less than a year after the Great War. She is part of the generation who often accept as right what government officials say. Living on her own walking with difficulty and suffering from diminishing eyesight she is not the type to get into trouble with HMRC you might think? Alice was 91 when HMRC imposed a 100% penalty!
This article considers when a taxpayer is protected by the ‘reasonable excuse’ defence and when the ‘special circumstances’ provision (at FA 2007 Sch 24 para 11) should apply. Reviewing some recent decisions of the First-tier Tribunal we show that HMRC expect taxpayers to meet a standard above the statutory test and risk penalties...
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Ray McCann and Cathya Djanogly review recent case law which suggests that HMRC have been applying the penalty legislation too rigidly
Consider the following situation. ‘Alice’ (not her real name) was born in 1919 less than a year after the Great War. She is part of the generation who often accept as right what government officials say. Living on her own walking with difficulty and suffering from diminishing eyesight she is not the type to get into trouble with HMRC you might think? Alice was 91 when HMRC imposed a 100% penalty!
This article considers when a taxpayer is protected by the ‘reasonable excuse’ defence and when the ‘special circumstances’ provision (at FA 2007 Sch 24 para 11) should apply. Reviewing some recent decisions of the First-tier Tribunal we show that HMRC expect taxpayers to meet a standard above the statutory test and risk penalties...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
